Energy as a Service

Commercial and Industrial Energy as a Service Applicationsand Deployment Models: Global Market Analysis and Forecasts

The electric power industry is facing a fundamental shift from centralized generation toward a more decentralized grid known as the Energy Cloud. Commercial and industrial (C&I) energy and sustainability managers are choosing to apply new technology and business model innovations driven by the Energy Cloud to meet energy needs. Navigant Research anticipates that these evolving grid and customer factors will converge to give rise to demand for vendor-based energy business model disruptors that can provide turnkey energy as a service (EaaS) solutions.

EaaS can be defined as the management of one or more aspects of a customer’s energy portfolio—including strategy, program management, energy supply, energy use, and asset management—by applying new products, services, financing instruments, and technology solutions. While in its early stages, the EaaS market consists of third-party vendors, utility services companies, and potential business model disruptors deploying niche technical, financing, or procurement solutions like solar PV power purchase agreements, energy services performance contracts, and deregulated electricity market retail brokerage services. As the EaaS market matures, it is expected to give rise to the outsourcing of energy portfolios and turnkey vendors equipped with a comprehensive set of technical, financing, and deployment model options. According to Navigant Research, the annual global market for the deployment of C&I EaaS is expected to reach $221.1 billion by 2026.

This Navigant Research report analyzes the global market for the deployment of turnkey EaaS focused primarily on large Fortune 500 equivalent C&I customers. The study provides an analysis of the market issues, including drivers, barriers, and regional and global trends, associated with EaaS offerings and deployment models. Global market forecasts, segmented by region, application, and deployment model, extend through 2026. The report also examines the key applications related to EaaS, as well as the vendor landscape.

Key Questions Addressed:

What is energy as a service (EaaS)?

What are the key market drivers and barriers for the deployment of EaaS solutions?

What regional trends are affecting the deployment of commercial and industrial (C&I) EaaS systems?

Which deployment models will EaaS vendors use and what applications will they bring to market?

What are the global market forecasts for the deployment of C&I EaaS systems through 2026?

Who needs this report?

Solar PV project developers and financiers

Solar PV technology manufacturers

Distributed energy resources (DER) technology manufacturers

Combined heat and power (CHP) project developers

Demand response (DR) technology manufacturers

Microgrid project developers, systems integrators, and financiers

Energy services companies

Investor community

Table of Contents

1. Executive Summary

1.1 Introduction

1.2 Overview of EaaS Applications

1.3 Forecast Highlights

2. Market Issues

2.1 EaaS Market Overview

2.2 Customer Energy Needs

2.3 EaaS Applications

2.3.1 Energy Portfolio Advisory Solutions

2.3.2 Onsite Energy Supply

2.3.3 Offsite Energy Supply

2.3.4 Energy Efficiency and Building Optimization Solutions

2.3.5 Load Management and Optimization Solutions

2.4 EaaS Deployment Models

2.5 EaaS Maturity Landscape

2.6 Current EaaS Vendor Landscape

2.7 C&I EaaS Market Drivers

2.7.1 Customer Needs

2.7.2 Evolving Utility-Customer Relationships

2.7.3 Decreasing Component Costs

2.7.4 Data Accessibility and Technology Advancements

2.7.5 Financing Innovation

2.7.6 Emergence of Turnkey EaaS Advisory Expertise

2.8 C&I EaaS Market Barriers

2.8.1 Traditional Utility Regulatory Models

2.8.2 Lack of Financing

2.8.3 Lack of Turnkey EaaS Expertise

2.8.4 Market Competition

2.8.5 Technology Deployment Challenges

2.8.6 Payback Challenge

3. Market Forecasts

3.1 Introduction

3.2 Methodology

3.3 North American C&I EaaS Market Forecast

3.4 Western Europe C&I EaaS Market Forecast

3.5 Asia Pacific C&I EaaS Market Forecast

3.6 Conclusions and Recommendations

4. Acronym and Abbreviation List5. Table of Contents6. Table of Charts and Figures7. Scope of Study, Sources and Methodology, Notes